Expect financial results ranging from “stable” to “gradual improvement” for the U.S. insurance industry in 2014.
So forecasts industry research firm Conning in a new report, “U.S. and Global Insurance Industry Outlook: Improving Performance Amid Economic and Regulatory Challenges.” The report explores influences on insurers — including U.S. property & casualty insurers, U.S. life insurance and annuity providers, U.S. health insurance providers, plus insurers operating globally — and identifies internal changes and demands to expect in the year ahead.
Underpinning the forecast for U.S. insurers are “mostly favorable” economic drivers.
“[M]any companies are beginning to reap the rewards of investments in technology and an increasingly analytical approach to the business,” the report states. “However this view is accompanied by increasing uncertainty; improvements may be interrupted or reversed through economic, political, or regulatory developments unfolding in 2014.”
Turning to the global industry outlook, which focuses chiefly on industry prospects in Europe (including the U.K.) and Asia, the reports highlights the dominant influence of regulatory and economic factors affecting companies in these regions.
“Growing regulatory convergence and complexity are commanding insurer attention and resources,” the report observes. “Fragmented economic growth is creating new pockets of growth, while challenging established markets.”